The consumer and retail environment has been a tough nut to crack for investors these days. high inflationary pressures and uncertainty have crimped much of the enthusiasm for retail stocks. That’s true even heading into the critical holiday spending season. But you wouldn’t know that from our newest Best Dividend Capture Pick’s results. It continues to perform well and reward shareholders.
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
On the surface, our pick is just like any other kitchen and home goods retailer, but there are a few aspects that make our pick special. The secret to our pick’s win is its focus on high-end consumers. While inflation has been hitting everyone, those on the upper end of the income bracket haven’t realized its effects to the same degree – they continue to spend freely. Our pick’s focus on high-end merchandise and manufacturer exclusives allows for juicy profit margins as well.
Moreover, our pick has developed a “cult-like” status for many of its major brands. New rewards programs have driven repeat shoppers. This makes it the go-to and first-stop retailer for its clients. Growth has continued to be had, thanks to pandemic-era trends of in-home cooking and in-home design services, augmented reality applications and limited-edition items – all of which have continued to boost profits.
This is wonderful news for dividend investors, and it builds upon our pick’s nearly twenty years’ worth of consecutive dividend increases. With that, our pick makes for a great dividend capture play. A dividend capture strategy involves buying a stock before its ex-dividend date and then selling it after it has recovered the payout. With an ex-dividend date of Thursday, October 19, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 5.9 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest home goods pick could be a lucrative option.
